Q1 2021 Revenues Increase 51% to a Record $11.1 Million; Net Income Grows 155% to a Record

 $0.9 Million; Grew Cash Balance by over $1 Million; Operating Cash Flow of $1.2 Million

EAST RUTHERFORD, NJ, June 15, 2020 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, has reported its financial results for the first quarter ended April 30, 2020.

Financial Summary:

		Three Months Ended April 30,				Year-over-Year %
		2020		2019		Change
Revenues		$11.1 million		$7.4 million		51%
Gross Profit		$3.7 million		$2.4 million		57%
Operating Expenses		$2.8 million		$1.9 million		45%
Net Income (Loss)		$0.906 million		$0.356 million		154%
Earnings per Share		$0.03		$0.01		200%

Recent Highlights:

• Launched an 11 week national marketing campaign on Sirius XM Radio to promote MamaMancini’s new Plant-Based Meatballs and Sauce, made with Beyond Beef^®, a plant-based ground meat made by Beyond Meat^®.
• Announced operational improvement initiatives in conjunction with a leading renowned industry consulting agency, 15/16 Group, to streamline and accelerate manufacturing operations in anticipation of future growth. As part of this initiative, the Company is creating a dashboard of Key Performance Indicators and installing the NetSuite application to improve operational controls and visibility of plant floor performance, which it expects to be ready starting fall 2020.
• Record sales Activity with QVC in April, selling over $1 million of MamaMancini’s products to QVC customers.
• Attended the June 2020 Virtual Investor Summit, a virtual investor conference taking place June 9-12, 2020.

Management Commentary
“The first quarter of 2021 was highlighted by our robust revenue and net income growth which lays the foundation for an incredible fiscal year,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “We continue to see robust demand, which we are servicing more efficiently than ever given the numerous operational improvements being implemented at our facility. We expect these improvements to increase throughput while driving gross margin expansion as we scale, particularly as beef prices begin to return to normal.

“We believe the increase in demand is partially driven by a spike in first time customers, as consumers continue to obtain the majority of their food purchases from grocery stores in the first quarter. Our goal is to continue engaging and converting these first-time customers into repeat purchasers, as we have typically seen with our products. As stay-at-home orders are lifted and businesses reopen, we plan to transition our strong first quarter momentum into the food service segment.”

“I am proud of the progress we have made in the first quarter and would like to thank our dedicated employees for their hard work and flexibility, which have allowed us to sustain our growth in a changing world. We look forward to continued revenue growth and margin expansion throughout the year, creating sustainable value for our shareholders over the long-term,” concluded Wolf.

First Quarter 2021 Financial Results
Revenue for the first quarter of 2021 increased 51% to a record $11.1 million, compared to $7.4 million in the same year-ago quarter. During the three months ended April 30, 2020, the Company was able to increase its sales through increased purchases at retail food stores and direct to consumer due to COVID-19.

Gross profit increased significantly to $3.7 million, or 34% of total revenues, in the first quarter of 2021, compared to $2.4 million, or 32% of total revenues, in the same year-ago quarter. Gross margin increased due to higher plant operations and efficiency and a change in product mix.

Operating expenses totaled $2.8 million in the first quarter of 2021, compared to $1.9 million in the same year-ago quarter. As a percentage of sales, operating expenses decreased in the first quarter of 2021 from 26% to 25%. Operating expenses increased primarily due to increases in freight, commissions related mainly to higher sales and professional fees related to increased investor relations initiatives.

Net income for the first quarter of 2021 grew significantly to $0.9 million, or $0.03 per share, as compared to a net income of $0.4 million, or $0.01 per share, in the same year-ago quarter. The increase in net income was primarily attributable to an increase in sales of 51%, increase in gross margins from 32% to 34%, lowering of operating expenses as a percentage of sales to 25% from 26%, and in addition to a decrease in interest expense.

Cash and cash equivalents as of April 30, 2020 was $1.8 million, as compared to $0.4 million at January 31, 2020. The cash balance as of April 30, 2020 includes $330 thousand of proceeds from a Paycheck Protection Program term note, the proceeds of which were returned to the lender on May 6, 2020.

Conference Call
Management will host an investor conference call at 5:00 p.m. Eastern time today to discuss the Company’s first quarter 2021 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q1 2021 Earnings Conference Call
Date: Monday, June 15, 2020
Time: 5:00 p.m. Eastern time
U.S. Dial-in: 1-844-889-4326
International Dial-in: 1-412-317-9264
Conference ID: 10144790
               
Please dial in at least five minutes before the start of the call to ensure timely participation.

A playback of the call will be available through June 19, 2020. To listen, call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally. Please use the replay pin number 10144790.

About MamaMancini’s Holdings, Inc.
MamaMancini's Holdings, Inc. (OTCQB: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Sams Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company has a major presence on QVC, the largest direct to consumer marketer in the world. For more information, please visit www.mamamancinis.com.

Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company's 10-K for the fiscal year ended January 31, 2019 and other filings made by the Company with the Securities and Exchange Commission.

Investor Relations Contact:
Luke Zimmerman
Senior Vice President
MZ Group - MZ North America
(949) 259-4987
MMMB@mzgroup.us
www.mzgroup.us

MamaMancini’s Holdings, Inc.
Condensed Consolidated Balance Sheets

		April 30, 2020				January 31, 2020
		(unaudited)
Assets
Current Assets:
Cash		$	1,814,028			$	393,683
Accounts receivable, net			3,967,266				3,727,887
Inventories			1,180,653				1,246,417
Prepaid expenses			262,034				252,268
Total current assets			7,223,981				5,620,255
Property and equipment, net			2,975,261				2,805,843
Operating lease right of use assets, net			1,456,998				1,490,794
Deposits			20,177				20,177
Total Assets		$	11,676,417			$	9,937,069
Liabilities and Stockholders’ Equity
Liabilities:
Current Liabilities:
Accounts payable and accrued expenses		$	3,830,965			$	3,552,790
Term loan			304,148				423,799
Operating lease liability			131,752				126,516
Finance leases payable			148,779				105,126
Promissory note			330,505				-
Total current liabilities			4,746,149				4,208,231
Line of credit – net			3,147,348				2,997,348
Operating lease liability – net			1,335,738				1,372,349
Finance leases payable – net			469,968				315,234
Notes payable - related party			641,844				641,844
Total long-term liabilities			5,594,898				5,326,775
Total Liabilities			10,341,047				9,535,006
Commitments and contingencies
Stockholders’ Equity:
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of April 30, 2020 and January 31, 2020, 0 and 0 shares outstanding as of April 30, 2020 and January 31, 2020			-				-
Preferred stock, $0.00001 par value; 19,880,000 shares authorized; no shares issued and outstanding			-				-
Common stock, $0.00001 par value; 250,000,000 shares authorized; 31,991,241 and 31,866,241 shares issued and outstanding as of April 30, 2020 and January 31, 2020			321				321
Additional paid in capital			16,722,457				16,695,352
Accumulated deficit			(15,237,908	)			(16,144,110	)
Less: Treasury stock, 230,000 shares at cost, respectively			(149,500	)			(149,500	)
Total Stockholders’ Equity			1,335,370				402,063
Total Liabilities and Stockholders’ Equity		$	11,676,417			$	9,937,069

See accompanying notes to the condensed consolidated financial statements

MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)

		For the Three Months Ended
		April 30, 2020				April 30, 2019
Sales-net of slotting fees and discounts		$	11,100,919			$	7,364,824
Cost of sales			7,373,319				4,933,770
Gross profit			3,727,600				2,371,054
Operating expenses:
Research and development			29,481				25,326
General and administrative			2,722,165				1,866,162
Total operating expenses			2,751,646				1,891,488
Income from operations			975,954				479,566
Other expenses
Interest			(64,402	)			(116,612	)
Amortization of debt discount			(5,350	)			(7,288	)
Total other expenses			(69,752	)			(123,900	)
Net income before income tax provision			906,202				355,666
Income tax provision			-				-
Net income			906,202				355,666
Net income per common share
– basic		$	0.03			$	0.01
– diluted		$	0.03			$	0.01
Weighted average common shares outstanding
– basic			31,991,241				31,866,240
– diluted			33,946,276				32,098,426

See accompanying notes to the condensed consolidated financial statements

MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)

		For the Three Months Ended
		April 30, 2020				April 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	906,202			$	355,666
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			159,793				180,485
Amortization of debt discount			5,350				7,288
Share-based compensation			27,105				17,257
Amortization of right of use assets			33,796				10,658
Changes in operating assets and liabilities:
Accounts receivable			(239,379	)			363,046
Inventories			65,764				(63,584	)
Prepaid expenses			(9,766	)			(98,651	)
Accounts payable and accrued expenses			278,175				(87,411	)
Operating lease liability			(31,375	)			(9,851	)
Net Cash Provided by Operating Activities			1,195,665				674,903
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets			(105,616	)			(242,820	)
Net Cash Used in Investing Activities			(105,616	)			(242,820	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of term loan			(125,001	)			(325,001	)
Proceeds from promissory note			330,505				-
Borrowings (repayments) of line of credit, net			150,000				(15,865	)
Repayment of capital lease obligations			(25,208	)			(14,121	)
Net Cash Provided by (Used in) Financing Activities			330,296				(354,987	)
Net Increase in Cash			1,420,345				77,096
Cash - Beginning of Period			393,683				609,409
Cash - End of Period		$	1,814,028			$	686,505
							-
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
Income taxes		$	-			$	-
Interest		$	67,265			$	151,968
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Operating lease liability		$	-			$	1,599,830
Finance lease asset additions		$	223,598			$	54,163

See accompanying notes to the condensed consolidated financial statements

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